More young people are taking unconventional paths to homeownership as mortgage rates in the U.S. remain elevated and housing demands surpass existing supply.
As of this week, a 30-year fixed-rate mortgage averaged around 6%, with a 15-year fixed-rate mortgage averaging around 5.4%, according to Freddie Mac. A 2024 estimate from the mortgage buyer showed the U.S. had a housing shortage of approximately 3.7 million homes.
Jacquelyn Cusumano and Camryn Moody, both 24, told "Good Morning America" they teamed up to buy a home in Florida last fall instead of continuing to rent as roommates.
"I was looking at apartments that were just one bedroom and they're as expensive as our mortgage," Cusumano said.
At first, the two best friends said not everyone was on board with their non-traditional plan.
"People are like, 'What the heck? That's crazy,' and then other people are like, 'Are you sure?'" Cusumano said.
The National Association of Realtors says the typical age of first-time homebuyers in the U.S. is now around 40 years old, the highest on record.
Ultimately, Cusumano and Moody, who both work in real estate, purchased a four-bedroom, 1,700 square-foot home about an hour outside of Palm Beach and split the cost in half. They said they used their savings and bonuses from their jobs to cover their down payment and closing costs.
The pair are part of a growing trend of younger Americans trying to get a foothold in an unaffordable housing market.
Tricia Lee, a Serhant real estate broker who also appears in the reality TV series "Owning Manhattan," said she has noticed the trend becoming more common as young Americans look for ways to overcome high housing prices.
"Gen Z is looking [at home ownership] younger. They are super, super ambitious and super focused, and they understand that things are unaffordable," Lee said, noting that "equity builds and actually makes what's unattainable attainable."
Lee added that some younger homeowners simply don't want to wait to get married to get the benefits of owning property and building wealth.
Cusumano and Moody said that concept resonated with both of them.
"It just felt very rewarding to be able to be a single woman and just being able to own something for yourself and to do it with my best friend," Moody said.
Cusumano and Moody also said that before they closed on their home, they had discussions about what they would do if one of them wanted to move out in the future. They said if that happens, they plan to rent out the property for additional income and split the revenue evenly.
Lee added that for other friend groups considering buying a home together, a verbal agreement between parties isn't enough.
To make sure that everyone is on the same page, Lee recommends having a written legal document outlining who is going to live in the property, how equity will be divided, and what happens if someone needs to move out because of a life change, such as a new job or a new relationship. Lee also added that friends should have conversations and decide how long they plan to live together before starting the process of looking at homes.
